Estimate your potential monthly revenue on Amazon FBA in the US market.
Understanding Your Amazon FBA Revenue
Selling on Amazon through the Fulfillment by Amazon (FBA) program offers significant advantages, including access to Amazon's vast customer base and logistics network. However, to maximize profitability, it's crucial to understand and accurately estimate your revenue and costs. This FBA Revenue Calculator (US) helps you project your potential monthly earnings by considering key revenue streams and Amazon's associated fees for sellers in the United States.
How the Calculator Works:
The calculator takes your input for the average selling price, estimated units sold, and various Amazon FBA fees to provide an estimated Gross Monthly Revenue. The formula used is:
Gross Monthly Revenue = ( (Selling Price Per Unit - FBA Fee Per Unit - Storage Fee Per Unit - Other Costs Per Unit) * Units Sold Per Month ) - (Selling Price Per Unit * Referral Fee Percentage * Units Sold Per Month)
Let's break down each component:
Average Selling Price Per Unit (USD): This is the price at which you intend to sell your product on Amazon.
Estimated Units Sold Per Month: Your projection for how many units of your product will be sold within a given month. This can be based on market research, historical data, or sales forecasts.
Average FBA Fulfillment Fee Per Unit (USD): This fee covers Amazon's costs for picking, packing, and shipping your product to the customer. It varies based on product size and weight. You can find the exact fees on Amazon's Seller Central website.
Amazon Referral Fee Percentage (%): Amazon charges a percentage of the total sale price for each item sold, which varies by product category. This fee covers Amazon's sales commission.
Average Monthly Storage Fee Per Unit (USD): Amazon charges a fee for storing your inventory in their fulfillment centers. This fee is typically based on the product's volume and the time of year (e.g., higher in Q4).
Other Variable Costs Per Unit (USD): This includes any additional costs directly tied to selling a single unit, such as packaging materials, inserts, custom labels, or shipping supplies.
Why This Matters: Profitability & Pricing Strategy
Accurate revenue estimation is vital for several reasons:
Profitability Analysis: Understanding your potential revenue helps you determine if a product is viable and profitable after accounting for all fees and costs.
Pricing Strategy: This calculator can inform your pricing decisions. If your projected revenue is too low, you might need to increase your selling price (if market conditions allow) or find ways to reduce your costs.
Inventory Management: By projecting sales, you can better estimate how much inventory to send to FBA, balancing the risk of stockouts against the cost of excess storage fees.
Business Planning: Realistic revenue forecasts are essential for budgeting, scaling your operations, and setting business goals.
Disclaimer: This calculator provides an estimate based on the inputs provided. Actual revenue may vary due to fluctuations in Amazon fees, selling prices, sales volume, and unforeseen costs. Always refer to official Amazon Seller Central documentation for the most up-to-date fee structures.
function calculateRevenue() {
var productPrice = parseFloat(document.getElementById("productPrice").value);
var unitsSoldPerMonth = parseFloat(document.getElementById("unitsSoldPerMonth").value);
var fbaFeePerUnit = parseFloat(document.getElementById("fbaFeePerUnit").value);
var referralFeePercentage = parseFloat(document.getElementById("referralFeePercentage").value);
var storageFeePerUnitPerMonth = parseFloat(document.getElementById("storageFeePerUnitPerMonth").value);
var otherCostsPerUnit = parseFloat(document.getElementById("otherCostsPerUnit").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = "; // Clear previous results
// Validate inputs
if (isNaN(productPrice) || productPrice <= 0 ||
isNaN(unitsSoldPerMonth) || unitsSoldPerMonth <= 0 ||
isNaN(fbaFeePerUnit) || fbaFeePerUnit < 0 || // FBA fee can be 0 for digital goods
isNaN(referralFeePercentage) || referralFeePercentage 100 ||
isNaN(storageFeePerUnitPerMonth) || storageFeePerUnitPerMonth < 0 ||
isNaN(otherCostsPerUnit) || otherCostsPerUnit < 0)
{
resultDiv.innerHTML = "Please enter valid positive numbers for all fields.";
resultDiv.style.backgroundColor = "#dc3545"; // Error color
return;
}
// Calculate revenue before referral fee
var revenueBeforeReferral = (productPrice – fbaFeePerUnit – storageFeePerUnitPerMonth – otherCostsPerUnit) * unitsSoldPerMonth;
// Calculate referral fee amount
var referralFeeAmount = (productPrice * (referralFeePercentage / 100)) * unitsSoldPerMonth;
// Calculate net revenue
var netRevenue = revenueBeforeReferral – referralFeeAmount;
// Ensure net revenue is not negative due to high costs
if (netRevenue < 0) {
netRevenue = 0; // Cannot have negative revenue from sales, indicates loss
}
// Format the result
var formattedNetRevenue = netRevenue.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
resultDiv.innerHTML = formattedNetRevenue + "Estimated Net Monthly Revenue";
resultDiv.style.backgroundColor = "var(–success-green)"; // Reset to success color
}